2 Reliable Stocks Beginners Can Buy Amid the Market Selloff

As the broader market turmoil continues, new investors can buy these two reliable dividend stocks to get good returns on their investments.

| More on:
stock data

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The recent market selloff is making investors nervous — especially beginners. While no one wants to see the value of their stock portfolio reduce, it’s important for beginners to understand that stock investing is not a short-term game. In this article, we’ll find out how new investors can still make money from stock investing, despite the ongoing market turmoil.

The best way for new stock investors to make money

New investors should always focus on buying stocks at a bargain and holding them for the long term. This is one of the key rules of making money from the stock market that the world’s most successful investors reiterate over and over. As most high-growth stocks have witnessed extreme volatility lately, buying them right now could be a bit risky for investors with a low-risk appetite. Nonetheless, beginners can still buy reliable dividend stocks, which could help them get regular income, even in difficult economic times. Let’s look at two such reliable dividend stocks in Canada that I find worth considering for beginners, despite the ongoing market selloff.

Canadian Natural stock

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is a Calgary-based energy sector giant focused on crude oil and natural gas exploration and production, primarily in North America. It currently has a market cap of about $92.4 billion as this reliable stock trades at $79.19 per share with outstanding 47% year-to-date gains.

The ongoing solid growth trend in its financials supports its year-to-date stock gains. In the March quarter, Canadian Natural’s total revenue rose by around 62% YoY (year over year) to $10.7 million, beating analysts’ estimates of $9.5 billion. Consistently surging demand for energy products amid reopening economies and a higher price environment helped the company post an outstanding 178% YoY jump in its adjusted earnings to $2.86 per share in Q1.

In addition, CNQ stock has a decent dividend yield of around 3.8% at the moment. Canadian Natural’s strong balance sheet has allowed it to significantly increase its dividends in the last few years — making it one of the most attractive stocks for new investors right now.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another reliable Canadian energy company with a market cap of about $28 billion. Despite the recent broader market selloff, its stock trades with 31% gains in 2022 at $50.35 per share.

After posting a strong 39% jump in its total revenue in 2021, the company has made a strong start to the year by posting a 49% YoY increase in its first-quarter revenue, crushing analysts’ estimates by more than 30%. Similarly, its adjusted earnings in Q1 stood at $0.81 per share, reflecting a nearly 59% YoY improvement.

While Pembina Pipeline has been serving the North American energy market for nearly 65 years, it’s now also focusing on expanding business in the global market. This is one of the main reasons why I expect its financial growth to accelerate in the coming years. This reliable dividend stock currently offers an attractive dividend yield of 5.1%, which could help investors keep getting regular income.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends CDN NATURAL RES and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

Stocks for Beginners

New Investors: 3 Top Dividend Stocks to Start a Simple Portfolio

These quality dividend stocks are worthy for new investors to consider for a simple passive-income portfolio.

Read more »

Make a choice, path to success, sign
Stocks for Beginners

New to Investing? Here’s How to Not Lose Money

One way to avoid losing money in the stock market is to stick to broad market index funds like iShares…

Read more »

Knowledge concept with quote written on wooden blocks
Stocks for Beginners

An Easy Way to Understand a Recession

Are recessions good or bad? It depends on how prepared you are for one. Here’s what a recession does to…

Read more »

analyze data
Stocks for Beginners

New Investors: Start a Portfolio With These 3 Stocks

Are you a new investor looking for stocks to add to your portfolio? Here are three top picks!

Read more »

protect, safe, trust
Stocks for Beginners

2 Safe Stocks Beginners Can Buy for Reliable Passive Income

If you are a beginner investor looking for safe, reliable passive income, I've got two TSX stocks you can rely…

Read more »

Stocks for Beginners

Investing Strategies for Canadians in an Uncertain Economy

These are uncertain times, as the economy grapples with high inflation. Here are four investing strategies for the current market.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

How to Start Investing in a TFSA in a Down Market

Are you interested in starting a TFSA during a down market? Here are a few tips to keep in mind.

Read more »

Make a choice, path to success, sign
Stocks for Beginners

TFSA Investors: Must-Have Stock Strategies for Your Retirement

While reliable income stocks could help TFSA investors reduce their risk profile, high-growth stocks have the potential to significantly multiply…

Read more »